“Skin in the Game”
This is a term coined by the renowned investor Warren Buffett and is a principle used by many investors who offer individuals financial support. It can also be termed as “hurt money”.
Many consumers who have been wronged demand a course of action to ensure the wrong is righted. That being the case these potential litigants are naturally required to pay something for the benefit they will receive and that something is of course “money”. This ensures that a consumer has “skin in the game” which goes some way to prove a consumer is as committed to the cause as the backers are. It also ensures that the consumer acts appropriately, assists those who are funding the case, will attend meetings, and a trial, should the need arise. It further ensures the consumer will support those aiding them so that all participants in the case are aware that “should they lose” the consumer “will lose as well”. “One for all and all for one” principle. This is coined as “skin in the game” and the Funder should be content in the knowledge that the consumer also has something to lose in the event the case is lost.
Not having skin in the game or if a consumer’s rewards, should the case win, are too low, of course the outcome would not impact on the existing position of the consumer, thus, consumers tend not to be over concerned whether the case is lost or won.
If a consumer has skin in the game, the consumer, will of course, be entitled to a larger proportion of the damage award.